Its loan stocks, Barakah-LA opened at 80.5 sen, up 27 sen from its offer price of 53.5 sen.

At 9.21am, the share price was up 54.5 sen to RM1.08. There were 18.27 million shares done.

Its loan stocks rose 23 sen to 76.5 sen with 6.63 million units done.

The FBM KLCI fell 4.46 points to 1,803.01. Turnover was 302.79 million shares done valued at RM209.97 million shares.

Barakah took over Vastalux Energy Bhd listing status. It has an order book of RM700mil, including a RM500mil umbrella contract to provide hook up and commissioning work for three production sharing contractors Petrofac, Newfield and Talisman.

The company was said to be eyeing for part of a Petroliam Nasional Bhd on-going project to replace oil and gas pipelines in the country in stages.

Some analysts estimated the transportation and installation (T&I) portion of the job could be worth between RM15bil and RM20bil over three years.

UOB Kay Hian Research had initiated coverage on Barakah with a Buy and a target price of RM1.

“Our target price is derived from a 13 times fully-diluted FY15F PE, based on the assumption that Barakah will merely be a subcontractor in the T&I business. In a blue-sky scenario, our target price would be upgraded to RM1.60,” it said.

KUALA LUMPURP: Barakah Offshore Petroleum Bhd, an oil and gas services provider, which made its debut on the Bursa Malaysia Main Board today, aims to secure between RM500mil and RM600mil worth of contracts yearly, supported by continuous demand in the industry.

Chief financial officer Firdauz Edmin Mokhtar said the contracts will be secured through its three core businesses pipeline services; transportation and installation; and hook-up commissioning.

"Currently, the pipeline services are the largest contributor to Barakah's earnings. We expect transportation and installation business will be the next key contributor as the company has invested a lot in the assets given its business potential," he said.
Among the assets is a new pipelay barge "PLB-Kota Laksamana 101, which the group expects to be a catalyst for its growth in the transportation and installation segment, he told a press conference after the listing.
The listing saw Barakah gaining a 33 sen premium to 98 sen over its initial 65 sen offer price, with 1.4 million shares transacted at the opening bell.

"With the listing, the company is eyeing between 20% and 30% increase in revenue for its current financial year," Firdaus Edmin said.

For the financial year ended Sept 30, 2013, the group recorded about RM202mil revenue, with net after-tax profit of about RM33mil. - Bernama

In a filing to Bursa Malaysia today, the group said the increase in turnover was mainly due to the completion of topside installation work, the start of new transportation and installation contracts. and other construction activities carried out during the current financial period ended June 30, 2014.

Barakah has an order book of approximately RM2.28 billion for secured contracts, over the next three to five years, it said.

It said the group’s prospects for FY14 will remain positive, given the commencement of the long-term Pan-Malaysia transportation and installation contract during the current period, as well as the on-going onshore engineering, procurement, construction and commissioning projects which will last at least until 2018.